Leadership by Algorithm Book Summary

Book Summary

15 min

Brief Summary

AI or artificial intelligence is a revolutionary technology that has the potential to automate many daily tasks. However, it does not have a consciousness, and therefore is unable to correct for biases or use moral judgment. Therefore, while many management positions, which involve repetitive tasks and pattern-based decision-making, will likely be taken over by AI in the future, algorithms cannot replace leaders. Good leaders demonstrate empathy, creativity, strong critical thinking skills, high-level decision-making, and good moral judgment, all of which AI cannot do. Therefore, while leaders will need to cultivate a new skill set to effectively utilize AI in their organizations, AI is unlikely to replace true leaders.

About the Author

David De Cremer is a professor and Provost Chair at the National University of Singapore Business School. He also serves as the director and founder of the Centre on AI Technology for Humankind at NUS Business School. He is an advisor for Novartis International AG in Basel, Switzerland, and is a founder of the Leading Artificial Intelligence & Digital Management platform. Previously, he was the KPMG endowed professor at Judge Business School, University of Cambridge.

De Cremer was named the 2009-2010 most influential economist in the Netherlands. He was named a Global Thought Leader by the Trust Across America – Trust Around the World organization in 2016, and one of the World’s top 30 Management Gurus and Speakers in 2020.

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What You’ll Learn

How AI has the potential to completely revolutionize daily life, society, and business in the future
Why even the most advanced AI will not replace good leadership
The skills leaders will need to cultivate to be effective in an AI-based organization

Who Is This For

Managers and employees who want to learn how to stay competitive in an AI-based workplace
Business leaders who want to develop their skill set to be most successful in the future
Individuals who want to be informed of the revolutionary potential of AI technology

Key Insights

AI has the potential to completely revolutionize daily life, society, and business. It can analyze and process incredible amounts of data and can take over single-application, repetitive tasks, but it does not have the moral judgment or critical thinking capabilities necessary to replace true leaders. AI will likely replace certain managers, whose daily tasks can be easily automated, but they lack the insight, empathy, and perspective necessary to take over leadership positions. Only humans are capable of considering multiple different viewpoints, values, and contexts in order to make good high-level decisions. While algorithms will no doubt be a useful tool for analyzing data and improving decision making, organizations will need leaders who have advanced critical thinking, moral judgment, and high-level decision-making skills to be successful in the future.

AI Will Change The Future

Artificial Intelligence, or AI, is the future of technology. It is a technology that is so innovative, it has the power to change every aspect of daily life, society, and business. The more it advances, the faster the change will come, and it is possible that AI will take over the majority of decision-making, rendering the future unrecognizable as soon as the year 2030.

Algorithms have an advantage over humans because they are faster and have more computing power than people do. They have access to untold amounts of data and unrivaled computing power, which has enabled them to achieve great accomplishments, like beating the best human Go or chess players and even diagnosing medical conditions faster and more accurately than humans can. With its power, AI can make individuals, businesses, and economies more productive and efficient than ever before. Machine learning enables workers to offload mundane, repetitive tasks onto machines. Algorithms can make better business decisions because they can store and process more data than any individual worker or CEO can.

However, AI lacks consciousness, empathy, and feelings. Therefore, they do not have intent. They simply do what they are programmed to do. For that reason, AI is unlikely to take over the world, because AI technology will only do what humans let it do.

AI Will Replace Managers, Not Leaders

AI technology is best at accomplishing specific, repetitive, single application tasks, like playing chess or analyzing financial data. AI is even able to mimic human speech. It is able to learn from patterns and respond based on previous interactions, but it will falter if it encounters something that it has never experienced before.

AI is not able to imitate essential human qualities of leading and decision making,...